EXERCISE 2: CONSUMER MATHEMATICS EXERCISE 2: CONSUMER MATHEMATICS
Learning Outcomes After completing this exercise, you will be able to: • conduct research on what your approximate starting salary will be once you have
graduated • plan a monthly budget based on your starting salary which will include basic
necessities such as rent, food, mortgage, and electricity • define and describe the applications of fundamental mathematical concepts from
consumer mathematics • develop solutions to problems observed in personal experience based on
fundamental mathematical ideas and principles • operate applicable technological tools to effectively analyze and visualize data. Overview The purpose of this exercise is to begin to think about your monthly income and expenses after graduation. You will determine your monthly pay and take into account any possible expenses. You are to turn in all mathematical work. Use as many different sources as possible to make your results as realistic as possible and cite all of your sources.
Procedure 1 Determine the average starting salary for your desired position after graduation by
either using the Internet or asking those working in the field (you can likely ask your major professor). You must cite your source using APA Style (asking someone is also a source). Then, calculate your monthly pay with the appropriate taxes taken out. Use the following table to determine the percentage of tax taken from your salary.
2 List all your monthly expenses. Again, cite your sources. 3 Use Zillow or another realtor site to find a place to live in your desired city. Add the
cost of rent to your monthly expenses. Again, cite your source. 4 Then, create an Excel spreadsheet of your monthly budget detailing each month’s
income and expenses. Make sure to budget for rent, food, gas/public transportation, cell phone, electricity, water, student loan payments, etc.Remember to also budget savings and special expenses like gifts and vacation. Your expenses should also be less than your income.
5 Use Zillow or another realtor site to choose a future home (house, condo,
townhouse, etc.), land, or office space in your desired city. Calculate how much you need to save each month for your down payment and for how long you need to save for this down payment. A typical down payment is 20%. Incorporate this calculated savings amount into your budget. Look up the current mortgage interest rates. Do the calculations for the monthly payments and total home cost for a 15- year fixed and 30-year fixed rate. Then, identify which home loan you will choose. Again, cite your source.